- CFA Exams
- CFA Level I Exam
- Topic 8. Alternative Investments
- Learning Module 3. Investments in Private Capital: Equity and Debt
- Subject 1. Private Equity Investment Characteristics
CFA Practice Question
Management fees of private equity funds are paid to ______.
B. LPs only
C. both GPs and LPs
A. GPs only
B. LPs only
C. both GPs and LPs
Correct Answer: A
User Contributed Comments 2
| User | Comment |
|---|---|
| ankurwa10 | See the GP as the Investment Manager and LP as investors. So, investors would not really manage their own money (why go a PE player then at all), hence only the GP takes the management fee. |
| ibrahim18 | @ankurwa10. You seem to be the author of AN. Nice work. Comments on every section |